Iranian Exports Up In Key Regional Markets

Reza Fatemi Amin, Iran’s Minister of Industry, Mines, and Trade, has revealed a significant increase in  Iranian exports to numerous regional countries. Since March 21, 2022 (The first day of the Iranian fiscal year), Iranian exports grew by 23% to Iraq, 46% to Turkey, 63% to Oman, 23% to Russia, and more than 20% to African countries.

According to the World Bank, Iran’s economy is characterized by its hydrocarbon, agricultural, and service sectors and a noticeable state presence in manufacturing and financial services. The top exports of Iran are Ethylene Polymers, Crude Petroleum, Acyclic Alcohols, and Semi-Finished Iron. They are exported primarily to China, Turkey, Pakistan, United Arab Emirates, and Germany.

Due to the “unstoppable” western sanctions, Iran is battling rampant inflation, a currency sharply losing value, and an intensifying squeeze on living standards. The sanctions bring difficulties to Iran’s oil-dominated economy. Despite all these crises, the World Bank pointed out that over the last two years, Iran’s economy has rebounded, supported by a recovery in services post-pandemic, increased oil sector activity, and accommodating policy action.

To counterbalance this, Tehran recently unveiled a budget for the 2023 financial year that is 40% bigger than the 2021-22 budget, relying on projected exports of 1.4 million barrels of crude per day at an average price of US$85 a barrel. That will be used to support the development of

Iran’s non-oil industry sector such as automobile manufacturing. Iran’s economic activity has also adjusted to sanctions, including through exchange rate depreciation which helped domestically produced tradable goods to become price competitive internationally.

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